Scope for further tax cuts say economists

Economists say there are options for National to offer further tax cuts, as a way to help people through the tough times ahead but also to help boost economic growth. The SST reports:

Deutsche Bank chief economist Darren Gibbs said a future National government could accelerate – as well as improve – tax thresholds and tax relief ahead of the April 2010 date set in the Budget.

“Just as Labour has a May 2008 Budget tax package kicking in in October, so could a National government in a May 2009 Budget bring forward the next round of tax relief to October next year,” he said.

It was unlikely there would be cuts in front-line spending (fewer doctors, teachers and so on) to pay for that.

But he said National could pay for more capital spending through public- private partnerships where private money, not public, built infrastructure such as roads that would be tolled.

Plus National has also announced before the budget that it has not signed up to around $2 billion (over four years) of Labour’s spending plans.

The Hive has some suggestions for other areas. They also say they would like to see the trains but who on Earth would be stupid enough to pay $1.5 billion for them?